Activity 1. Invest Wisely After a month of saving your allowance, you accumulated 10,000 in your account. You want to make more of this money and you just heard from your friends about “investing”. So you posted on your Facebook that you are looking for something you can invest your money. Two of your friends commented. One friend says, “Invest to me and after one month, your money will increase by 20% every 10 days.” Another friend of yours says, “Invest to me and your money will increase by 30% every 15 days for a month.” To whom you will invest? To help you decide whether who between your friends to choose, you can make a timetable and compare. Original Amount 5 th 10th 15th 20th 25th 30th Rate of increase in % 10,000 (friend A) 10, 000 (friend B) To whom you will invest and why?
Activity 1. Invest Wisely After a month of saving your allowance, you accumulated 10,000 in your account. You want to make more of this money and you just heard from your friends about “investing”. So you posted on your Facebook that you are looking for something you can invest your money. Two of your friends commented. One friend says, “Invest to me and after one month, your money will increase by 20% every 10 days.” Another friend of yours says, “Invest to me and your money will increase by 30% every 15 days for a month.” To whom you will invest? To help you decide whether who between your friends to choose, you can make a timetable and compare. Original Amount 5 th 10th 15th 20th 25th 30th Rate of increase in % 10,000 (friend A) 10, 000 (friend B) To whom you will invest and why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Activity 1. Invest Wisely
After a month of saving your allowance, you accumulated 10,000 in your account.
You want to make more of this money and you just heard from your friends about “investing”.
So you posted on your Facebook that you are looking for something you can invest your money.
Two of your friends commented. One friend says, “Invest to me and after one month, your money
will increase by 20% every 10 days.” Another friend of yours says, “Invest to me and your money
will increase by 30% every 15 days for a month.” To whom you will invest?
To help you decide whether who between your friends to choose, you can make
a timetable and compare.
Original Amount 5
th 10th 15th 20th 25th 30th Rate of increase in
%
10,000 (friend A)
10, 000 (friend B)
To whom you will invest and why?
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